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On December 1, Year 3, Bud sold a light-duty truck (Sec. 1245 asset) used in his business for $27,000. Bud purchased the truck on January

image text in transcribed On December 1, Year 3, Bud sold a light-duty truck (Sec. 1245 asset) used in his business for $27,000. Bud purchased the truck on January 1, Year 1, for $25,000 and took $15,400 in depreciation using the MACRS tables. The $17,400 gain on the sale was A $15,400 Sec. 1245 gain and $2,000 Sec. 1231 gain. B Sec. 1231 gain. C Capital gain. D $2,000 Sec. 1231 gain and $15,400 capital gain

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